Cloudbound Franchise
Cost, fees, owner earnings, closure rate and litigation for a Cloudbound franchise — pulled from the franchisor's own public FDD (2025), not its sales material.
Disclosure honesty
Cloudbound discloses little or no owner-earnings data (Item 19) — the franchisor won't put real profit in writing.
What their own earnings claim actually says
Franchisor makes no representations about franchisee future financial performance or past outlet performance. No financial data provided.
What a Cloudbound franchise actually costs to run
| Fee | Disclosed | Where it comes from |
|---|---|---|
| Initial franchise fee | $60,000 | Item 5 — paid up front, before you open |
| Royalty | 6% of gross sales | Item 6 — charged on revenue, not profit |
| Advertising fund | 3% of gross sales | Item 6 — brand marketing, spent at the franchisor's discretion |
| Total recurring fees | 9% of gross sales | Before rent, labor, food or debt service |
| Total initial investment | $1,815,000 – $3,631,460 | Item 7 — franchisor's own low/high estimate |
6% royalty + 3% ad fee; $12k first-month local advertising or 4% thereafter; substantial upfront equipment/attraction purchases required from franchisor/affiliates.
Royalty and ad-fund percentages are charged on gross sales — an owner pays them whether or not the location is profitable.
Cloudbound system size and owner turnover
| Total outlets | 0 |
| Ceased operations | 0 |
| Terminated by franchisor | 0 |
| Transferred to new owners | 0 |
Pre-revenue brand with zero franchised/company outlets as of 2024; no operating history to evaluate.
From Item 20 of the FDD 2025. Terminations and ceased operations are the franchisor's own count of owners who stopped — the number the sales pitch leaves out.
Is Cloudbound worth it? — how it compares to 436 similar franchises
| Ongoing fees | 9% of sales | steeper than 60% of other franchises franchises |
| Startup cost | from $1,815,000 | pricier than 93% of peers |
| Disclosure honesty | Grade F | less honest than most of the category |
| Disclosed lawsuits | 0 | fewer than most |
Benchmarked against every other franchises franchise we've graded from public FDDs — the context the franchisor's pitch never gives you.
Owner take-home for a Cloudbound
The franchisor's framing: Franchisor makes no representations about franchisee future financial performance or past … We reconstruct what an owner actually keeps, from their own FDD.
- Reconstructed owner P&L — net take-home after royalty, ad fund, rent, labor & debt
- Break-even timeline + cash-on-cash ROI
- Full fee stack + required-purchase markups
- Decoded real failure / closure rate
- How it ranks vs comparable franchises
- Validation-call playbook — the exact questions to ask
See a full sample report → · 30-day guarantee
Cloudbound franchise — frequently asked
- How much does a Cloudbound franchise cost?
- The FDD lists a total initial investment of about $1,815,000–$3,631,460, including a $60,000 initial franchise fee.
- How much do Cloudbound franchise owners make?
- Cloudbound discloses little or no earnings data (Item 19) — meaning the franchisor won't put real owner profit in writing. That's a red flag worth questioning.
- What are the Cloudbound franchise fees?
- Cloudbound's FDD discloses a $60,000 initial franchise fee, a 6% royalty on gross sales, a 3% advertising-fund contribution, for roughly 9% of gross sales in recurring fees before rent, labor, or debt service. 6% royalty + 3% ad fee; $12k first-month local advertising or 4% thereafter; substantial upfront equipment/attraction purchases required from franchisor/affiliates.
- What is the Cloudbound franchise profit margin?
- Cloudbound discloses no Item 19 earnings representation, so no profit margin can be derived from the FDD at all. Any margin figure quoted elsewhere is an estimate, not a disclosure.
- What is the Cloudbound franchise failure rate?
- Pre-revenue brand with zero franchised/company outlets as of 2024; no operating history to evaluate.
- How many Cloudbound locations are there?
- Cloudbound's FDD reports 0 total outlets, with 0 that ceased operations in the most recent reporting year and 0 transferred to new owners. Item 20 is where system health shows up before the marketing does.
- Does Cloudbound have complaints or lawsuits?
- Cloudbound discloses no material litigation in Item 3 of the filing we reviewed. That's a positive signal, though it covers only what the franchisor is required to report.
- Is a Cloudbound franchise worth it?
- It depends on the numbers, not the pitch. Cloudbound scores F on disclosure honesty, carries about 9% of sales in ongoing fees. Get the real owner take-home before you sign.
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Compare Cloudbound to similar franchises
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Source: MN CARDS 34856-202510-02 (Clean FDD 2025). FranchiseValidate is independent and not affiliated with Cloudbound or its franchisor. Figures are extracted from the franchisor's own public disclosure document; verify against the current FDD before any decision.